Nikkei 225 dropped 0.1% to 38,478.92, the Hang Seng gained 1.9% to 17,326.58, the Shanghai Composite index rose 1.8% to 2,930.80, S&P/ASX 200 gained 1.3% to 8,052.50 and the Kospi gained 0.5%, to 2,751.59
Asian stocks were mostly higher Wednesday following a decision by the Bank of Japan to hike its benchmark interest rate.
Policy decisions were due later in the day from the Fed and Bank of England.
Japan’s benchmark Nikkei 225 dropped 0.1% to 38,478.92 after the BoJ’s decision to raise the benchmark rate to almost 0.25% from 0.1%.
A rate hike by the Bank of Japan was expected to boost the yen, but since the decision was widely anticipated the dollar actually wavered against the Japanese currency, trading above 153.00 yen at times. It was almost unchanged at 152.78 early Wednesday afternoon Japan time.
The dollar had recently surpassed the 160 yen level, adding to pressure on the Bank of Japan to act. It has remained cautious about stifling growth and is just inching away from its ultra-lax monetary policy.
It appears that policymakers are inclined to raise rates to limit excessive declines in the yen but are being careful not to fuel any overreaction to the move, Yeap Jun Rong of IG said in a commentary.
The U.S. Fed is forecast to hold off on reducing interest rates when it announces its decision on Wednesday. The widespread expectation is that it will do so at its next meeting in September.
The Hang Seng in Hong Kong gained 1.9% to 17,326.58 and the Shanghai Composite index rose 1.8% to 2,930.80 after official data showed China’s July manufacturing activity dropped for a third consecutive month, fuelling expectations that Beijing will need to roll out more stimulus to counter a slowdown.
Australia’s S&P/ASX 200 gained 1.3% to 8,052.50 after data showed the annual rate of inflation has increased to 3.8% from 3.6% when the year started, and the CPI increased 1% compared with the last quarter.
In South Korea, the Kospi gained 0.5%, to 2,751.59.